The Oregon State Marine Board (OSMB) monitors ocean charter vessel owners and ensures financial security to their clients by requiring a $5,000 Charter Vessel Owner Bond. Clients of charters are guaranteed that their deposits will be returned to them if the excursion steers away from the agreement of the charter.
Purchase the Charter Vessel Owner Bond for the lowest rate available anywhere with Jet Insurance Company.
Since Jet avoids using a middleman, we are able to provide the Charter Vessel Owner Bond for only $100 a year or $10 per month. Most other agencies act as an intermediary between you and insurance carriers and have little authority in determining rates. They must submit all quotes to underwriting, which usually results in delays and then tack on broker fees. Jet prioritizes your needs by offering a secured rate below competitor’s starting prices.
Prices do not vary. Simply purchase the bond online and receive confirmation in moments. With Jet’s monthly payment option, you can keep your bond continuing as long as you need to without the hassle of infrequent renewals.
Yes! Once you purchase the bond, our office will prepare the form with all necessary signatures and the Jet seal. We send the Charter Vessel Owner Bond directly to the OSMB, saving you time and money. Other insurance companies send the bond to you, charging for the shipping cost, and expect you to send in the bond to the Board. Jet takes that stress away to make buying a bond as easy as possible.
If you need the bond to submit your initial licensing application, Jet will send the bond directly to you. All licensing paperwork can be mailed to:
OSMB - Charter Desk
P.O. Box 14145
Salem, OR 97309
The Marine Board requires a $5,000 bond for licensed charter vessel owners who accept deposits for trips with a value of over $100 per person. Charter boats taking seven or more people on a paid trip such as sightseeing, fishing, or other recreational activities are required to be licensed by the OSMB. The bond must be in effect at all times; any lapse in bond coverage will put the vessel license in jeopardy.
There are some charter boat owners that do not need to file a bond. For those vessel owners whose trip deposits are less than $100, a bond is not required for the charter vessel license.
The Board will use bonds as a tool that makes sure that laws are followed to protect the public or protect the obligee from a specific party who is required to obtain a bond. In regards to the Charter Vessel Owner Bond, the Marine Board regulates vessel owners to protect charter company customers’ deposits. The deposit can be collected either directly through the guide, or through a third-party, such as a booking site or agent.
The Charter Vessel Owner Bond is continuous until cancelled. Once filed with the OSMB, the bond must be actively cancelled by Jet. The OSMB will keep the bond in effect for 30 days until cancellation is settled.
While all charter vessel licenses are set to expire on December 31st, the bond must be renewed at the end of your bond term. Having a lapse in coverage in your Charter Vessel Owner Bond may cause issues with your licensing.
When an annual bond term is ending, you will have to pay Jet to keep your Charter Vessel Owner Bond in effect for the next term. With monthly payments, renewing your bond is even easier. As long as you keep payments coming in, Jet will continue your bond.
The bond protects charter customers from fraud, misrepresentation, losing a deposit after a cancelled excursion and trips that do not fulfill services agreed upon at the time of deposit. To avoid complaints, be sure to honor your agreements and if a trip is cancelled, provide a refund to your customers.
Even with the best intentions, you may still come across complaints. To avoid a complaint turning into a claim, be receptive to your clients and see if you can rectify the situation before it escalates, such as returning any collected payments for services not rendered will effectively prevent a claim being made.
When a customer files a claim against a Charter Vessel Owner Bond, Jet will begin an investigation, making sure that it isn’t a false accusation. If the claim is valid, Jet will pay the claimant.
Unlike a business insurance policy, which protects the charter from unforeseen accidents, a surety bond protects the public. The charter company is ultimately responsible for their own actions and therefore must reimburse the surety company for any claims paid. Think of the surety as providing you a letter of credit that you need to demonstrate to the OSMB that it’s safe to license you to take the public out on trips.